Estimation of Japanese price elasticities of residential electricity demand, 1990-2007

Shigeharu Okajima*, Hiroko Okajima

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

64 Citations (Scopus)


This paper estimates elasticities of Japanese residential price electricity from 1990 to 2007. The first difference generalized method of moment estimator is employed to avoid dynamic panel bias, which is not considered in most previous studies. The results show that while short-run elasticities are similar to those in previous studies, long-run elasticities are significantly lower in our study. We also find that the price elasticity of Japanese residential electricity consumption is notably affected by income inequality and severe weather. Based on these results, we provide some insights to tailor environmental taxation so as to effectively attain the Kyoto Protocol.

Original languageEnglish
Pages (from-to)433-440
Number of pages8
JournalEnergy Economics
Publication statusPublished - 2013 Nov
Externally publishedYes


  • Environmental taxes
  • Price elasticity of residential electricity demand
  • The first difference GMM estimator

ASJC Scopus subject areas

  • Economics and Econometrics
  • General Energy


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